Kathmandu, Dec 21: The government has decided to reduce the fee for embossed number plates, a scheme that has remained controversial for years due to high charges. With nearly 100,000 vehicles already fitted with the plates, the move aims to ease the financial burden on vehicle owners.

A high-level committee formed by the Ministry of Physical Infrastructure and Transport has recommended a fee cut. According to Transport Management Department Director Shrikant Yadav, the committee led by Joint Secretary Krishna Raj Panth has submitted its report to Minister Kulman Ghising. Discussions are underway on how to implement the recommendations.

Yadav said the current fee includes not only the cost of the plate but also expenses related to servers, database operations, 10 RFID tracking gates, and 100 handheld devices. The committee has suggested that the government bear the cost of this infrastructure and charge consumers only the actual plate cost. At present, all expenses have been bundled into a per plate price, making it expensive for users. The committee has advised the government to absorb some initial losses to provide relief.

The government cannot cancel the contract solely due to high fees because of legal constraints. If the contract is terminated due to government’s fault, it must pay 95 percent of the total project cost as compensation. Officials say revising the contract and lowering fees remains the practical option. Since the deal involves a foreign company, both Nepali and foreign laws apply.

In May 2015, the government awarded a contract to Decatur Tiger IT, a Bangladesh-US joint venture, to produce 2.5 million embossed plates within five years. The contract includes plate production, RFID gates, handheld devices, and transfer of an operational factory, for a total of 38.7 million US dollars.

Under the agreement, plate prices range from 14.5 to 19 dollars depending on vehicle type. After adding administrative and infrastructure costs, users currently pay up to Rs 3,600. Separating infrastructure costs could lower fees, though rising dollar rates still affect prices.

On demands to use Nepali script on plates, Yadav said it would require major software and design changes, raising costs sharply. The contractor has sought over 65 million dollars for such changes.

People’s News Monitoring Service

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